SunSirs: Building Material, Stable Operation of Domestic Wood Pulp Spot Market on February 24

According to the monitoring of SunSirs: as of February 24, the market price of softwood pulp was 4,500 RMB/ ton, and that of hardwood pulp was 3,750 RMB/ ton. The overall spot market of wood pulp was weak. The new crown epidemic hit the short-term domestic economy, and the downstream resumption of work was delayed. The recovery of the demand side remains to be observed.

In the short term, it is dominated by market sentiment. Secondly, due to the great impact of COVID-19 on the consumer industry and the tertiary industry, it will restrain the overall demand of paper terminals and create a negative situation. Due to the limited traffic, the downstream will delay the resumption of work and the postponement of goods preparation. The demand of the downstream paper enterprises for wood pulp is weakened, and the domestic stock may accumulate to suppress the price; the quotation of the foreign wood pulp factories is basically the same, which is expected to support the price; the information about the early supply is more favorable, and the price is expected to be lower after the drop, and the later effect will appear, which will support the price, and the wood pulp price is at the historical low level, waiting for the opportunity of fundamental oversold.

SP2005 contract support: 4,310; SP2005 contract resistance: 4650.

Futures: SP2005 contract closed at 4,606 RMB/ ton in the last trading day, up 8 RMB/ ton; the total position of wood pulp futures is 98,607 at present, down 920. Spot: last week, the wood pulp spot market was stable and weak, and the international wood pulp quotation rose by $20/ ton. Domestic wood pulp factories were mainly affected by logistics and transportation, and short-distance transportation was the main factor.

On February 23, the hardwood pulp commodity index was 81.52, unchanged from the previous day, down 40.87% from 137.86 (2017-11-13), the highest point in the cycle, and up 1.14% from 80.60, the lowest point on December 25, 2019. (Note: cycle refers to 2012-11-30 to now)

On February 23, the softwood pulp commodity index was 92.62, which was the same as the previous day, 39.11% lower than the highest point 152.11 (2017-11-08), and 2.56% higher than the lowest point 90.31 on December 16, 2019. (Note: cycle refers to 2013-09-01 till now)

According to the wood pulp analysts of SunSirs, the wood pulp market is dominated by stable short-term operation.

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